[ale] OT: if this won't make you want to puke....

[Gregory C. Johnson]

Mmm, not to fan the flames, but from a tax management perspective dividends
are the last thing these guys want.  They're sitting on a nice fat pile of
near-zero basis long term capital gains, which means they pay "only" 20
cents on the dollar for every dollar sold, at their discretion, in the
market.

Dividends, on the other hand, are not discretionary and they're normal
income, which for these gus gets nicked at 40+ cents on the dollar.  This is
almost certain to at least double, and more likely triple, quadruple, or
more their tax bill, Further, though Washington State has no corporate tax,
the Feds already got a 35% cut of MS's income.  This means that for each
dollar MS pays in dividends, the Gubbmint gets SIXTY ONE CENTS!!!

Uncle Sam is the big winner here - Every year they win the Mirosoft Lottery
with numbers bigger than the biggest Powerball/Big Game/whatever
jackpots --- guaranteed.

-Greg


----- Original Message -----
From: "Jeff Hubbs" <hbbs at attbi.com>
To: ale at ale.org
To: <ale at ale.org>
Sent: Friday, January 17, 2003 6:02 PM
Subject: Re: [ale] OT: if this won't make you want to puke....


Oh, and Paul Allen is trying to have a SETI radiotelescope built and
buy/maiontain a collection of WWII fighter planes.

These multimillionaires want to be so on more than just paper...

- Jeff

On Fri, 2003-01-17 at 17:58, Jeff Hubbs wrote:
> My guess would be that this is being done to facilitate a round of
> acquisitions the likes of which the world has never seen.
>
> "And now, presenting the 2005 Microsoft 'My Corvette'..."
>
> - Jeff
>
> On Fri, 2003-01-17 at 15:22, Geoffrey wrote:
> > "Microsoft long had opposed calls from some shareholders to use some of
> > its cash hoard — now $43.4 billion — to pay a dividend. But Microsoft's
> > board unanimously decided Thursday to pay a dividend of 8 cents per
> > share after the stock split, chief financial officer John Connors said."
> > .
> > .
> > "Microsoft chairman Bill Gates (news - web sites), who would own about
> > 1.2 billion shares after the stock split, would receive a dividend of
> > $99.5 million."
> >
> > (Which is over 10% of the total dividend payout.)
> >
> >
http://story.news.yahoo.com/news?tmpl=story&ncid=528&e=1&cid=528&u=/ap/20030
117/ap_on_hi_te/earns_microsoft
> >
> > --
> > Until later: Geoffrey esoteric at 3times25.net
> >
> > The latest, most widespread virus?  Microsoft end user agreement.
> > Think about it...
> >
> > _______________________________________________
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> > Ale at ale.org
> > http://www.ale.org/mailman/listinfo/ale
>
>
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